Joint book Goldman Sachs and JP Morgan launched a top-up placement for Cosco Pacific. The deal comprises 387.5m shares at HK$10.40–$10.96 apiece to raise up to HK$4.25bn (US$545.9m). The price range represents a 5%–9.9% discount to pre-deal spot. There is a 90-day lock-up on the company. The company closed flat at HK$11.54 today.
Sole book Morgan Stanley launched a share placement for United Laboratories at market close. The deal comprises 100m shares (50% primary/ 50% secondary) at HK$8.38–$8.58 apiece to raise up to HK$858m (US$110.3m). The price range represents a 6.8%–9% discount to pre-deal spot. Heren Far East is the vendor. There is a 90-day lock-up on the company and the vendor. The company fell 4.76% to close at HK$9.21 today.
Bumi Armada, a shipping company owned by tycoon Ananda Krishnan, is rumoured to have hired CIMB, CLSA, Credit Suisse, Maybank and RHB to manage its US$400m–$450m IPO. Another domestic bank may also be added. The issuer wants to do the deal before August, but internal restructuring may delay it. One ECM banker said: "With this group, you're not mandated until you've actually done the deal."
UBS has launched an up to Ps4.6bn (US$103m) accelerated top-up placement for Metropolitan Bank & Trust. It is offering 93.1m shares at Ps48.00–Ps49.50 apiece, a 10%–12.7% discount to the April 29 close of Ps55.00 per share. Federal Homes, Global Treasure Holdings, Philippine Securities and GT Capital Holdings are the vendors. There is a 180-day lock-up on the vendors. UBS is sole bookrunner.
Philippine shopping centre developer SM Prime has appointed CLSA and Macquarie as advisers to its proposed US$500m REIT issue. JP Morgan is advising Ayala Land and Citi is advising Robinsons Land on their planned REIT offerings, which will be around US$300m in size. The REIT law should come into effect in the next two weeks.
Joint leads BofA Merrill Lynch and RBS have launched an up to US$850m zero coupon CBs due 2030 for QBE Funding V. The CB is puttable by holders on May 12 2013, 2015, 2017, 2020 and 2025. The yield to final redemption is 2%–2.5% and initial conversion premium is 30% over the reference price of A$21.20 (equivalent to US$19.57 which is the April 29 close). Proceeds will be used to redeem so-called Lyons IV (liquid yield option securities) convertible securities which will redeemed by QBE Funding Trust IV on May 17. The deal, guaranteed by QBE Insurance Group, has the same structure as the Lyons deal done in 2007. Yield is likely to be set at the top end. The issuer is rated A3/A (Moody's;S&P). The credit spread is 100bp over Libor and bond floor works to 97.5–99 with implied vol about 18–23. The 100-day vol is around 25.
Fubon Financial has set a long-term fundraising plan for the year. The company is looking to raise up to NT$35bn (US$1.1bn) through equity raising. It is considering raising funds through domestic or overseas convertible bonds, share placement or GDR issuance. The company may opt for one or more of the above fundraising channels. If the company goes for a CB, the issue amount would not exceed US$1.1bn. Apart from selling shares, the company is also looking at a NT$10bn bond issue. The fundraising plan may or may not be materialised, depending on the company's funding needs.
Hong Kong and Nasdaq-listed City Telecom has completed its ADR follow-on. The base deal comprised 3.5m ADSs and there was a 15% greenshoe. The greenshoe was fully exercised, boosting the deal size to 4.025m ADSs. The deal priced at US$13 apiece to raise US$52.3m. Proceeds will be used to launch the company's new domestic free television programme services in Hong Kong and for general corporate purposes. Oppenheimer and Roth Capital Partners led the transaction.
Ji Hua Group has obtained the CSRC approval on its Rmb3.25bn (US$464m) A-share IPO. The company is planning to sell 1.157bn shares, or 30% of its enlarged capital base. UBS Securities is leading the transaction.
Two companies – O-Net Communications and Sijia Group – started trading on the Hong Kong bourse today and both made decent debuts. O-Net ended the day 37.6% above its IPO price while Sijia closed 12% above its issue price. Sijia raised HK$656m (US$84.3m) via Piper Jaffray. O-Net raised HK$560.5m (US$72m) via CLSA.
Miner Atlas Iron will raise A$63.5m (US$58.8m) through a placement to international and domestic institutional shareholders. Hartleys is managing the placement, which was heavily oversubscribed. The company will issue 25.5m shares at A$2.49 apiece, a 7.4% discount to the April 23 close. The placement is expected to be completed on May 7. Proceeds will be used to accumulate an ore stockpile ahead of the start of exports from its Utah Port facility in Port Hedland.
The book is covered on nursing college operator Masterskill's up to M$779m (US$243m) IPO. Pricing is scheduled for May 4. CIMB and Goldman Sachs are joint global coordinators and bookrunners.
Bank Internasional Indonesia's Rp1.407trn (US$156m) rights issue was 0.3% oversubscribed. Maybank, which holds a 97.52% stake in BII, took up its full rights and acted as standby buyer, but did not have to take up any excess rights shares. Around 6.25bn shares were offered at a price of Rp225 per share. The shares closed at Rp305 apiece on April 28. Mandiri Sekuritas managed the offering.